Hexcel expects to amend credit facility to maintain covenant compliance in 2003

By Sara Rosenberg

New York, Aug. 14 - Hexcel Corp. anticipates needing a further amendment to its senior credit facility in order to comply with financial covenants in 2003 unless financial performance is substantially improved or debt is substantially reduced, according to a filing with the Securities and Exchange Commission.

At June 30, the company's credit facility provided commitments of approximately $322.8 million, consisting of funded term loans of $110.8 million and revolving credit, letter of credit and overdraft facilities of $212.0 million. At June 30, about $99.3 million was drawn under the revolver. The facility matures in 2004, except for approximately $55.8 million of term loans that are due for repayment in 2005.

On Jan. 25, 2002, the company amended its credit facility, revising financial covenants for 2002, increasing spreads over Libor by 100 basis points, decreasing revolving credit and overdraft facilities from $235.0 million to $220.0 million, with a further reduction to $212.0 million on or before Sept. 30, 2002 and requiring that unused borrowing capacity available under the facility combined with all cash and cash equivalents equal at least $30.0 million on June 30, 2002, according to the SEC filing.

Hexcel is a Stamford, Conn. producer of advanced structural materials.

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